Global Power | Local Knowledge | Uniquely Personal
中文

An unexpected property hotspot ...

An unexpected property hotspot is taking over in Australia

A benefit to and drawback of the property industry anywhere in the world is that is can be unpredictable; in Australia at the moment, a part of its market that has lain dormant for more than five years has just begun to awaken.

There has been a recent influx of investors and others into Tasmania's capital city, which has surprised many in the sector, as this area isn't on Australia's mainland.

Real estate experts and buyer's agents have been going on buying sprees in Hobart on behalf of major investors from Australia's big cities.

What is it that is drawing people to Tasmania's property market? Largely, it has seen a growing economy due to the reversal of people moving to the mainland. Now, mainlanders are making the decision to move to the adjacent island, which is having a great effect on the property industry in this area.

In addition, seven major developers from Australia are planning to build hotels in Hobart, which has been of particular interest to buying agent Simon Pressley.

Speaking on the choice to pick up properties in this area, Mr Pressley commented: "We are expecting an influx of mainland investors, especially Sydney and Melbourne residents who have suddenly accumulated equity in their family home over the last few years and are looking for great investment opportunities."

Elijah Agostino, an investor from Sydney's Denham Court, has bought five investment properties in Hobart and the whole portfolio is positively geared.

He has pointed out that the capital gain might not be as high as it would be in Sydney or Brisbane but Hobart is still "very good for yields". Mr Agostino also seems to be aiming his properties towards a more youthful renter's market, as he said that Sydney is harder for younger people to afford to live in.

Over the past year, this activity has seen house prices in Hobart rise seven per cent and the belief is that this could rise to nine per cent over the next 12 months.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

Subscribe Now